tv Fast Money Halftime Report CNBC November 5, 2019 12:00pm-1:00pm EST
>> we're going to keep our eye on the markets. it's been an interesting day. jolts came in fairly strong, although the third drop in about four months. and then the curve as rick santelli has pointed out. let's get to the judge in the half. >> thanks. front and center this hour, the growing number of stocks making a run towards new highs. is that the most bullish sign yet for the long awaited breakout it is 12:00 noon. this is "halftime report." >> the stocks that are primed to lead the way. boeing fuelling the dow to record levels today. the company's chairman on cnbc to discuss the 737 max crisis, where the stock goes from here. why it may be time to get back into growth again. ten names for your portfolio. the investment committee is ready to go. "halftime report" starts right now.
our investment committee here today. pete, give me an idea of how the market has moved lately. 23% of the s&p 500 at or within three percent of new 52-week highs. seven of 11 s&p sectors within three percent of their high. we have made moves as we continue to kick around the question of whether we will have the breakout. >> and the negativity was pretty high. going back to the time when we heard from the banks and then the technologies and semis, when you look at 70% that has reported, that says something about how negative everybody was and the surprise that this is. we were trading in ranges probably 17 to 19, somewhere in that range. ever since the earnings have
gotten better and people are getting more comfortable the deeper we get into this thing, look at where the volatility is. it's an amazing move that we've seen there. and we continue to see extremely. we talk about the at the end of the show, massive buying yesterday of all the different entities, the fxi, the qqqs. 250,000 yesterday were brought to the upside. that's amazing to me. the volume over the last week in the options world, first of all, were on a record pace for this year. record pace. well above anything we have ever seen before. we are averaging about 20 million a day. for the last week and a half we're averaging 21 million per day. reminds me of the positive things that you've seen in the
unl stock market and now throw in what i said. 7 of 11 of the sectors are within 3% of the highs. the market has made a nice move. do we get that next big move >> this whole year, i have been pointing to the technicals as a reason to stay constructive. you have half the people saying recession, and the other half saying we are re-accelerating. when in doubt, just go by price. and when we do that, here is what we see today, financials are screaming higher. >> so is energy again. >> regional banks up almost six percent in the last three days. xlf up almost three percent. this is conviction buying. the transports which were looking suspect, today you are at a new 52-week high. semi conductors, all-time highs. take a look at the xrt. these are rooetail stocks.
now they are at the highest level since may. even small cap value. so the situation we find ourselves in is very interesting. you've got this massive gap between sentiment and price action. the sentiment is almost all negative. price action is extraordinarily bullish. there are 39 business days left in the year 2019. 29% of large cap managers are outperforming the russell 1,000. she's talking about a beta chase. the beta chase this year will be in the value indexes. and so that is to me the most bullish thing that you can look at is all these value stocks and sectors frankly like industrials, materials hitting 52-week highs. it's exactly what you want to see happen here in early november. >> which is so interesting because it's exactly what you see and exactly the way you're
playing it with moving away from the bar bell approach into a more cyclical and value portfolio. >> i think a lot of that is because we have made some progress with trade, but also the isms are stabilizing. i point you to the china pmi last week, four-month high. it really didn't get a lot of attention. globally, you are seeing stabilization. that is actually very, very important. on top of the global central bankers being very accommodative. they have been for quite some time. all of that does favor cyclicals especially because the valuations are very attractive. i have been shifting. i added a little bit of morgan stanley. i added to caterpillar, because i do think maybe not the coast is clear, but it's clearer. >> this is an interesting conversation now to have especially in light of keith might sayer this morning on squawk who is a thoughtful
investor and entertained the question of whether you can get that breakout, whether the market can continue to move higher on the back of the cyclical stocks at the expense of growth stocks. here is what he said. let's listen. >> i'm of the view that we're not going to be continue -- we're not going to continue to go up led by cyclicals and financials and traditional value sto stocks. there is a reason why investors were crowded into growth stocks. the economic environment for the world hasn't changed. there is still lots of negative yielding debt and a view that global growth will be lower than average. in that world, i think investors want to own companies that have real growth and will want to come back to businesses that grow at 20 plus percent regardless whether gdp is zero or three. >> what do we think of that? >> i think the algorithms have found the opportunity in the yield curve. i think the last six weeks are
basically all about the steepening of the yield curve. if you think we were at 48 -- we were at negative 50 basis points at the end of august. we are approaching the highs for the year in the three month at positive 30 basis points. financials are up 5.5% for the quarter. his is all about the steepening in that yield curve. i certainly think that condition can continue. we were questioning four or five weeks ago whether or not we needed technology to advance us to new highs. technology, while doing well in certain areas, it really is not leading us higher. they see price. they saw price over the summer. they went defensive. they're looking at it across the emerging markets, europe, energy and financials. and they're correlating that with a positive outlook. >> for now. i want to give you a chance to get in.
i want to give steph a chance to respond. it's a direct sort of challenge to a view that you have of the kind of stocks that are going to lead us higher, if, in fact, we are able to go there. >> that's 61% of the s&p weighting. so if those four groups can get going, i do think you can actually see new highs. it's been this rotation all throughout this year. i don't really know how long the rotation will last. and then i think if you get evidence of better growth around the world and you get actually growth in isms, i actually think you can see a value trade continue. >> how do you see it let's say we've troughed. we're going to pick up a little bit in the economy although atlanta fed is out with 0.95 prediction for q 4, we'll see about that. what's going to lead us higher if you think we're going to go
>> well, we're getting into this time. as you know the seasonal trade is labor day you buy many retailers and exit them going into black friday which is just several weeks into the future. right now, that's one of the focuses that i'd have post earnings absent all the other earnings coming our way would be looking and seeing how the consumer is holding up spending in the malls, spending online, how is digital doing for all of these different retailers. on the other hand, we're going to have a lot of tax law selling in the likes of cannabis stocks, in the likes of peloton, uber, lift. we're going to have a lot of tax law selling in those names. luckily, those aren't major names that drive the indexes. if you're unfortunate enough to be in those names, it will be a world of hurt in december. >> we've had a move away from
those stocks. >> it's going to continue. >> that's been -- growth at any price is over. that's a good thing for the market. that's what's going to power us towards 3 2 00. probably 25% for the s&p. you will see a tremendous amount of capital want to be in all assets in equities in particular. if there is a point in weakness in the calendar i think it comes in the february period. i think from here until then the market presses higher. >> let me throw out a couple of other views for us to debate. we like having him on the show and we like his views. we don't want to get too cautious here. this is simply a recognition he says in a note that says sentiment needs a rest, a recognition that short term things are getting stretched and any gains are likely to be given back. >> that's okay. jonathan's timeframe is
different. i think that's totally reasonable. you have had a two or three day jolt in sentiment. there has been the sense that china will work itself out. the fed just did what we wanted the fed to do and now we are heading into year end. i do think there was a burst of enthusiasm. we're watching it play out right now. and that could subside. and we could have a pullback to some of those breaks. i cited indexes that are at 52-week highs. we could retest those breakouts. that's a very short term timeframe versus what i think what most of us are trying to refer to. >> certain sectors are stretched. look at the payment space. >> source of funds. >> you really are seeing this massive rotation underneath the surface that is really pretty powerful. what's getting hit the hardest it's the things that have led us up until this point. >> tony dwier looks for 3350.
he is looking for a nice move in the market. expect minor pullbacks and more upside into year end. >> that's been the consistent theme of tony. he has been dead on. >> straight line approach view seems to be is that a mistake to believe that we're going to move >> tony's been right. tony's led us down this path of, he talked about three mini recessions, three big pullbacks, easing back. i think that's what the desk is alluding to. we're going to have moves to the upside and then pause and pull back a little bit. that's essentially exactly what tony is talking about here with a little more of a dramatic move to the down side. he said he is expecting -- he has been the one guy who has been up there above the 3,000 level and talked about some of the pit falls on the way. but that was the direction we're going. he has been right. i think the volatility gives the
opportunity. we say about it all the time. buy when you can, not when you have to. it means buy that protection now when we're in the 2s on the vix. buy that put to protect your portfolio. what if we get another situation like december last year? what if we get something that the market is not going to like. it might be very temporary. what if tomorrow xi says this ain't going to fly. we don't like what's going on. trump is not going to take down tariffs. that would be the kind of commentary that could absolutely give us a big push to the down side. >> the other perspective is to get concerned if we go too far and too fast. lee cooperman told us yesterday. let's listen to that. >> i would say a big move from here quickly five, six, seven percent quickly by the end of the year. 3250, something like that. i think you are knocking on the
door of euphoria. i would get a lot more deficientive. >> how about that? >> say that every year, though. >> and let's take it into context of being right around new highs. if you're going to hit the new highs and have a blast off into the end of the year over six weeks -- >> the value stocks aren't at new highs. it's the growth stocks. those are at new highs. it's the other group playing catchup. >> s&p sectors that have moved within three percent. >> we have made 780 new highs in the last 11 years. everyone of those could have been the last, but they weren't. actually, when you look at forward performance over six month or 12 month timeframes from the day you make a new high. you get better than average market performance. the concept of it's a new high
should force me to either buy or sell i think is a suspect concept. i think the better thing to say is what if markets spent this entire year digesting the earnings contraction and have paid their dues and have put in enough time in the salt mine so that if there is an acceleration especially internationally we are now poised to capture that rather than just say we're pulling in performance from a future year. i think you have to think about the market as forward looking and not necessarily worleyed about what's happening. >> this is an interesting idea to entertain whether if we did have a nice and meaningful move over what is traditionally a seasonally good period for the market if you are borrowing from next year. there is going to be uncertainty as you get further towards the election. trade war is not going to end
tomorrow. >> that is the story of how this works. what you're saying is 100 percent accurate. in 2017 we pulled forward all the gains from tax reform. and then what happened in 18 down five percent. that's literally how this works. i'm saying that we have paid our dues and didn't pull forward any performance because frankly earnings have contracted and not expanded. >> we always worry about things. the market always wants to climb the wall of worry. when it doesn't is when i worry. i think if the central bankers continue to do what they're doing and we see stabilization in growth and maybe monetary policy starts to kick in. if there is upside to growth -- let's get to a market flash on uber. >> scott, uber shares we want to bring up the idea that we are near the session lows for uber stock.
it's down about nine percent in trading with the losses we are now talking about a stock that has fallen by just around 37% or 38% away from it's ooip price. interesting is the market cap losses. since the peak in june of around $79 billion, we now stand at about $48 billion for uber shares. a sharp move lower on the heels of the earnings report from yesterday keeping an eye on shares. lyft in focus, as well. i'll send things back over. >> thank you for that. >> you don't own uber anymore. >> owned it for like six days. >> i continue to pointing to empreliminary attic of a particular bringing companies public and the idea that investors have five years to
wait for a company to become profitable because look how it works for jeff bezos. that era has come to a close. i think the implications of that, we see it in stocks that i own. i own slack. it's fallen victim to that. it did a direct listing, raised $800 million prior to coming public. didn't need a dime from wall street. that valuation support was ripped away. companies, fundamentals haven't changed at all. the attitude towards companies like this, that's what's changed. i don't see it going back right now. >> competition is everywhere. >> in particular in this space, the ride sharing space, we talk about the two. there are six other ride shares. >> it's not even just ride sharing. >> look at all the other things that compete in them. let's look at post mates. let's look at grub hub. uber eats competes against all
of that. everyone of these are terribly cut throat businesses where they're trying to grow. and the ones that are are being rewarded for it which are few and far between. and the rest like grub hub last week just tumbling. uber competes in way too many difficult spaces right now. and it's costing them. and they're having to pay drivers to stay on the road for them, to do additional drops whether it's an additional five or ten per day and pay them an extra $500 a month or whatever. these are all costs that they're incurring that are just choking that company. >> plus the regulatory concerns that were raised on our show about what if a big state like california decides these drivers are employees. they're not contractors. what about all of these drivers who are not filing and paying their share of payroll tax or social security tax? you have all of these lingering
issues that i don't think get resolved nicely and neatly. what investors are doing in advance are saying forget it. >> i think there is more to the story. it's more about the ipo story. there are companies that were supposedly making money. they are trading just as poorly as uber or peloton. look at pinterest. pinterest was mabing money. look how pinterest is trading. how about zoom video it's indicative. >> zoom was profitable. >> pull up a chart. >> 50 times sales. >> it's gotten caught up. >> pinterest, as well. >> at least that one was profitable. >> you can make that same case. i think it's indicative of the ipo landscape and really the characterization of the market. the mood has changed to more of a qualitative mood. it's a good thing for the market. >> the problem is this. the problem starts off with the path to profitability. when you bring up all of the
various names. we say that's great. when are they going to make money? how are they going to make money? make money in a really incredibly awful level. when you say make money, is this a company that you want to invest in? probably not. i'm talking about companies that are struggling and competition levels are extremely high. look at peloton, look at uber, the path to profitability for uber, for instance, they gave us one in 2021. they finally gave us one. >> on an adjusted basis. >> how much excitement. i want to be in uber, lyft, this and that. that's the problem is that at some point in time they have to make money. if they have been around for a long period of time rather than an early company. i'm talking about companies that have been around, then they go public, they've had a chance to get to that position to make money. but the competition levels are so heavy. uber's spending is up 30%. that's brutal.
>> to joe's point, path to profitability is a big part of this, even companies that aren't making money, we are thinking of tam as a concept. this total addressable market where the company says if we can just get one percent of this $4 trillion market we would make x amount of money. that actually was working. people were investing on that basis. look at chewy. company is making money. it's been around for more than 15 minutes. >> it spun out of a company already. >> this is as legit as you get for an ipo. >> the damage? >> the stock is down from almost 40 to almost 20. the fundamentals did not change at ll, just the attitudes. >> the valuation. >> that's what is really came down to was hype. they overhyped. you are looking at a valuation level if they add anything. >> you have to start multiplying something. >> this is fantastic.
>> that's not the way to address it. >> no wonder then you have according to bank of america flows value etfs for the eighth straight week. other firms are out with the best value picks. >> that's where the performance -- >> look at the banks. >> think about the damage that has been done to the ipo market. do you think that that negative sentiment is going to shift? do you think investors are going to trust the ipo market at any time in the next six months? sgr yes, i do. >> i don't know why you disagree. >> good. the next two years, investors will look at the ipo market and they will be discouraged to vaet invest. >> you can't blanket throw that over. >> they will believe that the private sector, the private accou equity is where the money is
made. >> scott, about four years ago, the last time that we had bill on the show before you had that great interview with him out in san francisco, he told me and the audience here that uber was worth about $12 billion. it's 48 billion after this ugly, ugly launch and subsequent sell off. that example -- not every stock comes up. >> the money is being made in the private equity market. these ipos are being handed off to the public market when they're mature already. >> not all of them. the trust -- you're questioning whether investors will trust ipos going forward. they'll scrutinize them more than they ever have before. >> agreed. that's what happens. >> we all agree with that. >> that's why they're failing. >> that's why --
>> it used to be enough for a lot of investors to say soft bank's in this, they're really smart. it comes public and they have a crack at it and they get excited. it's something that they couldn't have access to. i think we are all saying the same thing. weef have seen that moment subside, and we have seen the investor fervor for anything coming out of silicon valley diminish. i think what the end result of that will be is not no more ipos. it will be much fewer slam dunks for series b round investors that aren't taking public market risk. >> let me do this. i have to do mouse keeping. you guys want to do this now or take a quick break we're going to do that. we're going to take a quick break. we have richard fisher on the other side of it. we want to have enough time to talk to mr. fisher about all that's going on with the market and the fed. here's what else is coming up on
"halftime report." the day after for underarmer. shares taking a beating yesterday and getting a downgrade today by one firm. stephanie lake owns the stock. is she sticking with it? the call of the day is next. you don't want to miss unusual activity with joen and pete. their latest trades based on moves in the options mkeart is straight ahead. "halftime report" is back in two minutes. mini is a different kind of car. ♪ ladies and gentlemen for a different kind of drive. ♪ ladies and gentlemen for the drive to create a new kind of family car, that became a new kind of race car. for the drive to rebel, zag. for the drive that's inside you. and inside us. that's the drive under the hood of every mini. because every mini is...
welcome back. dow and nasdaq setting all time highs earlier today. and the fed may have something to say about where the market goes from here. let's welcome in richard fisher. it's nice to see you again. >> thank you. greetings from dallas. >> greetings to you, as well. cut, pause. that seems to be what we got from powell. is he done for the rest of the year >> there is only one more meeting december 10th and 11th i think it is. i think they're done. the question is whether they need to meet. i think the odds are slim. the so-called neutral rate is below the rate of inflation. i think they have built in inflation for a possible slow
down. the employment numbers, the payroll numbers and the pmis are pretty positive. earliest they seemed to have bottomed out. as long as the consumer keeps spending money, we're in pretty good shape. >> if you were around the table, that's your narrative that you would share if they said how do you see things moving forward? your view would be things have bottomed from certainly the manufacturing side of the economy which has been where the real weakness has existed. >> i think the manufacturing economy has been in a bit of a recession here. consumption is over 70% of what drives our economy. services drive our economy rather than manufacturing. that's been fairly robust. i think he has a good point. and i'm also -- i don't disagree. it depends on how people feel about the overall political
environment. if the president gets reelected i think there is an upside. you went there so i'm going to go there now. so we'll get to couper in a second. speaking today at the economic forum says elizabeth warren elected s&p would trade around 2250. that's a long way down. >> 25%. >> so you agree with that? >> well, of course, it depends on what policies she actually follows through with. i know her. i was an overseer at harvard for six years. i was -- she is a very good contracts lawyer.
she actually dodd-frank which neither dodd nor frank appeared to have done. the policies are not affordable. the way she is attacking people i think is excessive and even frightening. i think it would send a shiver up the spine of the economy if she were elected cephalyou saw the letter that lee sent to her, is that right? >> i did. just so you know, i'm not as wealthy as lee. i have done well. my parents are immigrants. they came here in 1939. attacking people who have done it on their own who came from nowhere, children of immigrants who have been successful i think is a very sad argument for someone to make who's campaigning for office. people like me or those who work by the sweat of their brow to come from nowhere are what make
this country great. >> let's listen to one thing that lee told us yesterday about a principle position of senator warren's. >> the wealth tax is a bankrupt concept. there are 14 or so nations that have tried it and dropped it. i mean, it's a nightmare. for 50 years we have been promised simplification by the irs. this would be a nightmare. every year you calculate your net worth and give two percent to the government. that's ridiculous. >> you say what? >> i don't know how you calculate your net worth particularly if you are invested in anything that moves in price. i think the other aspect which lee did not mention is does this drift downward into lower so-called high net worth brackets once you start down this path, i don't know where it stops.
i think itsends a shiver up th spine of anyone who has worked hard and became a millionaire. the question is where does it stop once you get that kind of a drug into your system, i don't know where you stop. for a minute i thought you were describing monetary policy. you know how i feel about monetary policy. >> once you get the drug into your system, where do you stop >> you know, i sat at the table. if we keep this process after qe and keep rates artstitially suppressed by a long time, it's like feeding a child opiates. it's very hard to get them off of it without creating behavioral disorders. i think the fed has reached a better position, but the modern monetary theory i don't think is a healthy thing.
why go down the path as americans? >> how is that for an opinion? >> i want more. you're living up to my expectations, richard. ray dalio speaking today said this about what the fed can do from here or maybe what it can't and how it could be stuck. i want your reaction to what he said. let's listen. >> i think the system is pretty much stuck. you can't raise rates, because as a result of the stimulation, companies and various entities have a lot more debt. so it is stimulated, the borrowing and the purchases have produced the stimulus.
you know if you do reverse it, it will have the effect of causing prices to go down. fair is that fair >> it depends on the underlying circumstances. if we have a shock surprise, you're not going to have a choice. it depends on what's counter acting not just price variables in the market. but i do think the fed is a a point of stasis. they have to save some and put the nuts in the tree they have described cuts so far. the one thing i would hate to see here is i don't want to go to a negative interest rate regime.
what do we do on the fiscal policy and let the american neural spirit run. i think we are in very good shape. i want to ask you one more question. it's on negative rates. the president has intimated that he's fine with negative rates. you just touted your willingness to give opinions. lee suggested and said exactly what you did that the economy is good.
do you support his reelection? >> i'm a nonpartisan individual. i checked my politics at the door at the fed. some things the president has done have been healthy. i thought the tax package from my standpoint was good for the economy. i think there is more business confidence. i'm not talking, by the way, by the trading companies. i'm talking about the little medium sized businesses run by women and men who create jobs which are the small and medium sized businesses that the national federation of independent business surveys. those are the people that have grown the economy. and they're still encouraged by the policies pursued not just by this administration, by the senate and by the congress on balance approving what the president has put forward. so i would say net/net, it's been a positive thing. the manner of expressing himself is not my manner.
i find it a little bit vulgar. i don't like the trade policy initiatives taking place. one last thing i want to mention, china will not be solved by virtue of some agreement. it will give us a little relief that the underlying difference between the two societies and give people freedom are controlled and i don't think will be resolved in a short term if ever. >> who do you vote for trump or warren? >> i vote for eisenhower. >> that's a great answer. so much for those opinions. it's good to have you. congratulations, inducted as a legend into the texas business hall of fame recently. >> thanks so much. >> it's good to talk to richard fisher. wall street's smartest minds to discuss some of the biggest opportunities and challenges in the markets. we have another very busy day of special guests.
>> reporter: i'm here with the founder and ceo. thanks for joining me. >> nice to be with you. >> talking about income inequality which echoes some of what we heard. it looks like we may not have that available. basically he said he would call on all of the corporate boards to basically take a look at how ceos are being compensated relative to employees and if employees are making less than a living wage as a way to fix income inequality. could you agree that corporations can solve some issues and do they have an incentive to do so >> i think given where we are with the employment cycle, it's
a perfect time to be doing this. it's long overdue. when we look at the conversations we're having, really the level of income inequality has gotten larger because particularly the wealth has gotten more concentrated into fewer hands and also the share of finance and technology has gone up a lot versus the share of labor. so if you look at it historically, the share of labor is out of whack in this country. and if you add to it the very large student debt that we have, which is a very unusual thing, only the u.s. has the student debt which means our students are coming out of college or post graduate work with a debt that they cannot overcome the rest of their working life with wages that are not adequate for normal life let alone paying back their debt, i think it's a really good time that ceos realize that if it was for self-preservation and selling goods in the future in the
market, they need the market. >> and as a well-known investor, environmental social governance, would you be more focussed in investing in companies that certainly had all of their employees covered by some sort of a living wage i mean, is that something that you think should be part of the esg framework as investors are thinking about investing in these types of companies >> absolutely. i think if you are investing in long term value, you are investing in a company to be around and to have great profitability. the only way for them to do that is for them not only to pay sufficient wages, but to have maternity leave, paternity leave and the right benefits. in fact, there was a study recently in japan where they reduced work days by one day. and that was an experiment. and productivity went up. >> amazing. amazing. thank you so much for joining us
here from the economic forum. we really appreciate it. >> great to be with you. i'll send it back to you. let's get to headlines now with sue herera. >> hello everyone. here's what's happening at this hour. hong kong's leader meeting with chinese president xi. lam's popularity is at an all-time low in hong kong. lam said president xi expressed support for hong kong's government. >> during a meeting with president with xi jinping he expressed care and concern about hong kong especially given the disturbances that we have seen in the last five months. and he expressed support for the various actions taken by the government. >> reporter: iranian president announcing that tehran will begin injecting gas into fuges as they previously spun empty under the landmark 2015 accord
that the u.s. with drew from. back here at home, an unexpected visitor attending monday night's football game between the new york giants and the dallas cowboys. obviously, a running back. a black cat got loose on the field, scampered into the end zone. it was last seen exiting the field as you saw there through the tunnel. a perrrfect way to end the game. and you can't make it up. >> it was a fun moment. >> thank you, sue herera. underer armor downgraded to neutral. based on the uncertainty stemming into the federal investigation, share higher on the day, still down nearly 10% over the past month down huge when the probe was finally revealed. it's our call of the day. i wanted to get your view on the record. you have been adding to shares leading into this. tell me.
cephalit >> it's a shame. they made progress. they beat earnings, revenues. gross margins were 40 basis points. that has been my argument as to why i want to own it. there is a lot of overhead. ooichk they made progress on all fronts. they said the last few weeks they have seen a pickup in sales, too. so it's unfortunate with this investigation. i'm not doing anything. my instinct is to buy it because it is down 33% from its high. i just feel like until we have more clarification on this investigation, it probably will be this overhang for a while. i like the turn around story. that's why i own it. i sold nike. >> what about the fact that it's a criminal investigation does that make you think it
could be worse >> i have no idea. some investors will say can't own it. it's a no touch. i get that, too. i'm just monitoring the situation. the company is doing callbacks. so we're going to learn some things. i just feel like the reason i own it fundamentally is working in its favor. this piece is obviously problematic. >> one issue is literally you are probably buying the stock when this thing was kept secret, not revealed. not disclosed. >> it's not the first time that people would criticize this management team. i'm trying to like focus on who is now going to be the ceo. and that's frisk. and i like him. he comes from vf corp. i think he has good execution skills. i think he will run his company better. i like the partnership because i want plank there as a strategic adviser. that's his role. i'm willing to go with frisk and the bench that they have. i'm not happy about it. i'm not bailing, not down 33%.
that's not the way i invest. >> coming up, options bulls are e nser sceportunity in energy, thcoumpa and more. stay tuned for unusual activity. colors and flavors and are gluten & dairy free. they're all clean all the time. even if sometimes we're not. sundown vitamins. all clean. all the time. fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research
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coca-cola shares off to start november. options traders see a rally ahead for that stock. >> that's right becaus i hate that commercial you might like owning shares >> who hates baseball? what's the matter with you >> i own the stock however, december 55, double nickel calls take a look at those they were purchased aggressively with the stock around $52 a share. not an expensive call. if coca-cola moves to the upside here, you'll be rewarded for being in these >> good stuff. >> i love polar bears. i like the company i own the stock. i've owned it for a very long period of time fidelity is the one i've got
october 23rd, we had the november 125 buyers, those more than doubled very fast we updated on friday now they're back once again and they're rolling the same buyers. they're now rolling all the way up to these april 130s pretty aggressive. these are a very expensive option when you add that there are 8,000 of them, this is a huge trade. a massive trade to the upside i'm in these calls >> do you have anymore for us? >> no. they told me just one. how about xle? we talk about energy december 63 strike calls huge buying in there as well 13,000 of those babies that's what i'm talking about. >> he's got more i'll keep firing these at you. >> let's talk about facebook it's changing its mojo >> facebook, facebook, facebook. >> changing its logo to be, quote, clear better the products that come from facebook and
further distinguish the company from the app >> now i get it. brilliant. >> twitter ceo jack dorsey, this is like little shade, right? trolling >> he was on the cover of "time" magazine with a nose ring. this is my dude. nothing bad to say about my president, jack dorsey >> of the two stocks, you've made your opinion well known on this you own twitter. you said you would never own facebook >> 42% >> i used to own facebook. i just feel like something is more important than money. i know that is anathema on this network but that's how i feel. love that shade. >> i did the political ads facebook won't >> they won't. and they shouldn't who is in charge of censorship it's who will guard the guards
>> so no rules ever. >> i did not say that. but i said if all of a sudden you say, well, we won't take any political ads. we'll let these guys -- >> let me ask you a question let's say elizabeth warren wins in 2020 because she runs a campaign lying about donald trump relentlessly every day fulled by money from overseas. you would be like, who will watch the watchman or you would be probably pretty pissed >> nothing to do with facebook versus twitter political ads >> i'm just saying as a society. >> that's what we're talking about. >> as a society we can find a place to agree where there should be a line between truth and lies in advertising. >> and i'm saying -- >> it won't be perfect >> who gets to decide what the truth is >> yeah. you get on decide. the consumer gets to decide. >> no, no, dude. >> you don't think that about the fda approving drugs. we decide one drug is safer and one isn't in. >> the reason that i say
facebook, the reason i say it has to come around, if you think now, if you were going to spend dollars. let's say the trump campaign, they've come out with this figure they said we're going to spend $10 million on twitter now we're not going to spend that money where is that money going to go? to facebook. that's a public relations nightmare if facebook is accepting all those funds coming from twitter because they can't be spend on the platform anymore. >> hold on a second. i don't want to do that. i can't get past this. you have no problem with crap and lies and bs being put out on social media and it is up to the consumer and the user to decide what's real and what's not did you really say that? >> a platform -- is this a platform or is this -- >> is it our job -- should i just lie for an hour >> what do you think >> what is it, scott >> i think it is a platform.
>> that's not the case >> i think it is >> 40% of americans get their news on facebook and they are literally doing contend deals with publishers and putting contend directly on facebook without a doubt acting in the capacity of a media organization >> then it could be regulated as such >> that's the point. >> it's not. >> so in other words, people, the legislative branch of the government -- >> the company says it can regulate itself. obviously it can't >> they ever they have the oversight. >> you said you don't want them to >> if they are a publisher versus a platform. are they a platform or a publisher is my question to you. >> i just don't understand how you could possibly have a point of view that it is okay to -- >> i don't care who it is. >> that they can lie and it is up to the consumer >> yes, it is. >> where the hell are we going, man? >> it's up to the consumer to do their homework >> okay.
was a more secure diaper closure. there were babies involved... and they weren't saying much. that's what we do at 3m, we listen to people, even those who don't have a voice. we are people helping people. servicenow put our this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.
are all non-gmo, sundown vitamins made with naturally sourced colors and flavors and are gluten & dairy free. they're all clean all the time. even if sometimes we're not. sundown vitamins. all clean. all the time. . okay we're back >> my favorite ad play for 2020 sound. 19% from its high. i still like the synergy story >> wright medical group. this one is supposed to be acquired by striker. maybe this is another bid coming because people are buying this
on the upside calls. >> okay. >> i hit on energy earlier take a look at what's going on right now. it hits every single day now massive volume to the upside i'm sticking with it >> josh brown. >> shake shack is having its worst day in the first day it's been a private company i bought some this morning i'm very happy aid chance to pie it very, very far off the high it is still up about 45% on the year or double the s&p but this was a good pullback and i want to take advantage of it. >> wait, wait, nothing on roy rogers >> no, nothing on roy rogers that's it. >> such a great discussion >> it really was we should have a podcast with you. we can go deep on roy rogers >> shake shack is public and roy rogers is not. >> that's right. >> we were tweeing about it. >> joe was looking at me like
why are we talking about roy rogers >> we talked about a lot of things >> gwre. staying long >> okay. the dow is up 58 thanks for watching. the exchange begins right now. roy rogers welcome, everyone. here's what's ahead. the markets may be at records but just 10% of the s&p 500 stocks are hitting all time highs and the technicals are not paining such a rosy picture. we'll speak to the ceo of charles schwab about the future of the company and the industry. and taking off the first analyst to cover virgin galactic says this stock is set to head out of this wore. he'll join us to make his case we begin with another record day on wall street >> i do have the numbers i will clarify, i did nokn